ST-Ericsson announces new cost savings plan

* Plan aimed to achieve $120 million of annualized savings by end of 2012

* Includes global workforce review that may affect up to 500 employees
Worldwide

* Company also pushes out target for break-even based on current
visibility

Geneva, Switzerland, June 23, 2011 - ST-Ericsson, a joint
venture of
STMicroelectronics (NYSE: STM) and Ericsson (NASDAQ: ERIC), today
announced that
due to recent changes in the business environment and reduced demand for
legacy
products at certain customers, it will launch a cost savings plan to
achieve
about $120 million of annualized savings by the end of 2012.

"These actions while necessary to strengthen the financial position of the
company, will not compromise the execution of our new products and delivery
to
our customers," said Gilles Delfassy, president and CEO of ST-Ericsson. "We
continue to gain traction on our new product portfolio and remain
steadfastly
committed to leadership in the smartphone and tablet markets."

Also, while the company keeps its strong focus to improving financial
performance, the company's path to profitability is expected to take
longer,
with the target break-even, based on current visibility, now planned later
than
the previously anticipated second quarter 2012.

The cost savings plan includes a global workforce review that may affect up
to
500 employees worldwide. Specific country impact related to the plan and
further
details will be provided when employee representatives have been involved
where
required. Restructuring costs are estimated to be approximately $55
million, of
which the majority is expected to be recorded during the second half of
2011.

About ST-Ericsson

ST-Ericsson is a world leader in developing and delivering a complete
portfolio
of innovative mobile platforms and cutting-edge wireless semiconductor
solutions
across the broad spectrum of mobile technologies. The company is a
leading
supplier to the top handset manufacturers and generated sales of $2.3
billion in
2010. ST-Ericsson was established as a 50/50 joint venture by
STMicroelectronics
(NYSE: STM) and Ericsson (NASDAQ: ERIC) in February 2009, with
headquarters in
Geneva, Switzerland.

The ST-Ericsson results reported in this press release do not reflect in
their
entirety the results of the Wireless Segment of STMicroelectronics,
which
include other activities that are not part of ST-Ericsson.

###

This press release contains forward-looking statements that involve
inherent
risks and uncertainties. We have identified certain important factors that
may
cause actual results to differ materially from those contained in such
forward-
looking statements. For a detailed description of risk factors see
STMicroelectronics' (NYSE: STM) and Ericsson's (NASDAQ: ERIC) filings with
the US
Securities and Exchange Commission, particularly each company's latest
published
Annual Report on Form 20-F.